No deposit car finance is one of the most popular ways for Kiwis to get behind the wheel of a new or used car—without needing a big upfront payment. In this guide, we’ll explain exactly how no deposit car loans work in New Zealand, who can qualify, and how to apply for fast approval.
What is No Deposit Car Finance?
No deposit car finance means you can buy a car without paying anything upfront. Instead, the full cost of the vehicle (plus any fees and interest) is spread over your loan repayments. This makes it easier for buyers who don’t have savings set aside for a deposit, or who want to keep their cash for other expenses.
How Does No Deposit Car Finance Work in NZ?
- Choose your car: Select a vehicle from a dealer offering no deposit finance (like Dave Allen Motors).
- Apply for finance: Complete a simple online application. You’ll need ID, proof of income, and proof of address.
- Get approved: The lender assesses your application. If approved, you can drive away with no upfront payment.
- Make repayments: Your loan repayments (including interest and fees) are made weekly, fortnightly, or monthly over the agreed term.
Who Qualifies for No Deposit Car Finance?
Most Kiwis with a regular income can qualify for no deposit car finance, but approval depends on:
- Income: You’ll need to show you can afford the repayments (usually via payslips or bank statements).
- Credit history: Good credit helps, but many lenders (including us) can help if you have minor credit issues.
- Employment: Full-time, part-time, and even some self-employed applicants can qualify.
- Residency: NZ citizens, residents, and some work visa holders may be eligible.
Every application is assessed individually, so even if you’ve been declined elsewhere, it’s worth applying.
Pros & Cons of No Deposit Car Finance
Pros
- No large upfront payment needed
- Drive away sooner
- Keep your savings for other needs
- Flexible terms and repayment options
Cons
- May pay more interest over the loan term
- Approval can be stricter for some applicants
- Not all vehicles or buyers will qualify
Tips to Get Approved for No Deposit Car Finance
- Check your credit score and fix any errors
- Have your documents ready (ID, proof of income, proof of address)
- Apply for a realistic loan amount
- Consider a co-applicant if your income or credit is low
- Be honest on your application
Frequently Asked Questions
Can I get no deposit car finance with bad credit?
Yes, some lenders (including Dave Allen Motors) can help customers with less-than-perfect credit. Approval depends on your current financial situation and ability to repay.
Is no deposit car finance more expensive?
It can be, as you’re borrowing the full amount. Interest rates and fees may be slightly higher, but it’s a great option if you need a car now and don’t have savings for a deposit.
How fast can I get approved?
Many customers are approved the same day, especially if you apply online with all your documents ready.
What documents do I need?
Typically, you’ll need a valid NZ driver’s licence or passport, proof of income (like payslips or bank statements), and proof of address (like a utility bill).
Apply for No Deposit Car Finance Today
Ready to get started? Apply online now or contact our team for a free, no-obligation chat about your options. Dave Allen Motors has helped thousands of Kiwis get approved for no deposit car finance—let us help you too!